The August 2026 ‘Month in Review’ from Herron Todd White analyses residential renovation activity across Australia’s major markets, illustrating how rising construction costs, trade shortages and economic uncertainty are reshaping buyer preferences. The report presents detailed case studies from Toowoomba (QLD), Adelaide (SA), Perth and regional WA, Darwin (NT), Canberra (ACT) and Tasmania, each showing purchase‑price, renovation scope and resale outcomes. Across the board, buyers are increasingly favouring move‑in‑ready, fully renovated homes, valuing certainty over the risk and disruption of DIY projects. In mid‑market suburbs, modest cosmetic upgrades (kitchens, bathrooms, flooring, paint, landscaping) can still generate strong upside, while high‑end projects in prestige locations deliver premium returns but require careful budgeting to avoid over‑capitalisation. The report also highlights regional nuances – for example, limited stock in Darwin and Tasmania drives a premium on turnkey properties, whereas Perth’s outer‑ring suburbs see a value gap between original and renovated dwellings. The authors conclude that successful renovation in the second half of 2026 will depend on disciplined purchase price analysis, targeted improvements aligned with local buyer expectations, and an awareness of the tighter profit margins caused by material inflation and trade delays.
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Toowoomba Mid‑Market Renovation Value Creation
Case studies of 27 Obst Street and 14 Binns Street show that modest cosmetic upgrades—kitchens, bathrooms, flooring, paint, landscaping—in 1960s‑80s brick‑timber homes can double resale values, driven by strong local market growth.